• AUD/USD climbed two week high on Monday as Australian dollar was lifted by improving global risk sentiment following signs of progress in U.S.-China trade negotiations.
• Chinese and U.S. economic leaders agreed on the outline of a trade pact on Sunday, ahead of a highly awaited meeting between Presidents Donald Trump and Xi Jinping in South Korea later this week.
• A successful trade pact would freeze additional American tariffs and Chinese export limits on rare earths, helping to calm investors unsettled by the ongoing trade conflict between the world’s top economies.
· Given Australia’s strong export ties to China, investors often treat the Australian dollar as a liquid proxy for global trade sentiment and risk appetite..
• Immediate resistance is located at 0.6549 (50%fib), any close above will push the pair towards 0.6574(Oct 10th high).
• Support is seen at 0.6500(Psychological level) and break below could take the pair towards 0.6478 (61.8%fib).
Recommendation: Good to sell around 0.6540, with stop loss of 0.6570 and target price of 0.6470
